Allianz has announced that it is expecting an operating profit of E1.8 billion for the first quarter of 2008, despite difficult market environment.

The group expects mark-downs of almost E0.9 billion for the quarter, which will have to be accrued in the area of structured financial products of Dresdner Bank due to the ongoing financial market crisis.

The company’s net income for the first quarter of 2008 is expected to reach about E1.1 billion, which is below the result of E3.2 billion recorded for the comparable quarter of 2007.

Helmut Perlet, a board member of Allianz, said: In this difficult market environment, an operating profit of almost E2 billion underlines our sustainable underlying profitability. Hence, we consider our medium term targets for 2009 to be still feasible, even though this will become harder, the longer the financial crisis will last.